CoinShares CSO: The rising popularity of Bitcoin derivatives means the 2020 halving won't push its price up

The May 2020 Bitcoin halving might not have such a dramatic effect on Bitcoin's price.

According to Meltem Demirors, the chief strategy officer of CoinShares, the popularity of the Bitcoin derivatives market means that the price of the underlying asset is becoming less relevant, which will keep it in check even after the halving.

Few events in the crypto industry have been as widely discussed as the upcoming Bitcoin halving.

One of the main takeaways from the crypto community seems to be that it will push Bitcoin's price upwards and ignite another major bull market.

Meltem Demirors, the chief strategy officer at digital asset management company CoinShares, said that there was a "Very real possibility" that the price of Bitcoin won't go up after the halving.

For the first time, she said, there's a robust, thriving derivatives market for Bitcoin, which means that the market is ripe with institutional money.

According to Demirors, most companies looking to speculate on Bitcoin will trade a derivative, not the underlying asset.

'Financializing' Bitcoin decouples its price from the supply and demand.

She went onto explained that the more Bitcoin got closer to becoming "An investable asset," the more its price became decoupled from both its value and its supply and demand.

Demirors went on to explain that Bitcoin has the potential to become "Financialized" and correlated to macro markets.